IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v6y2019i1p1656443.html
   My bibliography  Save this article

An empirical study on the relationship of corporate financial performance and human capital concerning corporate social responsibility: Applying SEM and Bayesian SEM

Author

Listed:
  • Hiroki Iwamoto
  • Hideo Suzuki

Abstract

The importance of corporate social responsibility (CSR) has increased in corporate strategic management. Thus, this study focuses on three relationships: 1) the relationship between corporate financial performance (CFP) and CSR activities (CSRA), 2) the relationship between CSRA and human capital (HC), and 3) the relationship between HC and CFP. This study uses fact-based data to remove subjective influences as much as possible. Fact-based data include an ordinal scale such as the presence or absence of specific measures. In addition, since it is assumed that the three relationships are mutually affected, this study analyses them simultaneously to consider a mediating effect. In this analysis, structural equation modelling (SEM) and Bayesian SEM (BSEM) are applied to fact-based data collected from 219 listed companies in Japan. The analysis results clarify that CSRA directly impacts CFP and mediates the impact of HC on CFP. In addition, the path value of CSRA to CFP is larger in BSEM than in SEM. Thus, this study shows the merit of using a method that can handle ordinal scale indicators.

Suggested Citation

  • Hiroki Iwamoto & Hideo Suzuki, 2019. "An empirical study on the relationship of corporate financial performance and human capital concerning corporate social responsibility: Applying SEM and Bayesian SEM," Cogent Business & Management, Taylor & Francis Journals, vol. 6(1), pages 1656443-165, January.
    • Handle: RePEc:taf:oabmxx:v:6:y:2019:i:1:p:1656443
    DOI: 10.1080/23311975.2019.1656443
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2019.1656443
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2019.1656443?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diego G. Ferber Pineyrua & Alfonso Redondo & José A. Pascual & Ángel M. Gento, 2021. "Knowledge Management and Sustainable Balanced Scorecard: Practical Application to a Service SME," Sustainability, MDPI, vol. 13(13), pages 1-24, June.
    2. Marian Socoliuc & Cristina-Gabriela Cosmulese & Marius-Sorin Ciubotariu & Svetlana Mihaila & Iulia-Diana Arion & Veronica Grosu, 2020. "Sustainability Reporting as a Mixture of CSR and Sustainable Development. A Model for Micro-Enterprises within the Romanian Forestry Sector," Sustainability, MDPI, vol. 12(2), pages 1-34, January.
    3. Shirlene Jane Nicole & Suddin Lada & Rudy Ansar & Azaze-Azizi Abdul Adis & Lim Ming Fook & Brahim Chekima, 2022. "Corporate Social Responsibility and Strategic Management: A Bibliometric Analysis," Sustainability, MDPI, vol. 14(17), pages 1-14, August.
    4. Ranya Saeed Alhmoudi & Sanjay Kumar Singh & Francesco Caputo & Teresa Riso & Francesca Iandolo, 2022. "Corporate social responsibility and innovative work behavior: Is it a matter of perceptions?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2030-2037, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:oabmxx:v:6:y:2019:i:1:p:1656443. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://cogentoa.tandfonline.com/OABM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.